Question

For the sale of my rental property I paid a broker commission. Is it deductible as a rental property expense in the area of "commission paid to a sales person?"

Forum|Forum|6 years ago
January 27, 2020
2 replies
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TurboTax Online

No, the broker commission is not deductible as a rental expense.

When you enter the sale of your rental unit, you can enter the broker commission as a selling expense. This will reduce the capital gain you may have on the sale of your rental home.

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X

XLS-Pilot

Turbo tax didn't have a place for me to put the commission or other expenses for the selling of my rental property. Where do I put those?

DaveF1006

It depends. Instead of listing these as expenses of rental property, it is handled a little differently. Here is the menu path you will follow:

Wages and income
Other Business information
Sales of Business Property>Start
Next screen, indicate this is Sales of Business Property>yes
Next screen will read Sales of Business or Rental Property
In this screen, you will report real estate commissions as a Cost of Property plus expenses of sales.

In addition to reporting real estate commissions as expenses, you may also deduct other selling expenses such as::

Advertising Expenses
Legal Fees
Broker Fees
Transfer taxes

[Edited 01-24-2021|02:55 PST]

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Carl11_2

Employee

Sounds to me like you may not have reported the sale correctly, or more likely you simply missed it on one of the screens when working through the program to report the sale.

As shown in the below screenshot, you include your commissions in the sales expenses boxes. Simply divide the sales expense by the same percentages you divided the sale price between the structure and the land.

X

XLS-Pilot

Ok I remember the boxes from your screenshot but I can't get back to them again to change them. How do I do that? I've been using Turbotax for years and this sale and entering the info is not easy and the questions do not do a very good job of it.

Carl11_2

Employee

Just start from the beginning of the Rental section, select to start/update the Sale of Assets/Depreciation section and work through the asset again just as you did originally. All the selections you made originally will be there already. Just "next" through it until you get to that screen.